The Supreme Court on Monday made it clear in no uncertain terms that the fixing of compressed natural gas (CNG) prices was not its domain, but it would intervene only if there was a violation of the fundamental rights of citizens.
A two-member bench of Justice Jawwad S Khawaja and Justice Khilji Arif Hussain observed that the apex court had nothing to do with fixing prices of commodities or policymaking, since they were the prerogatives of the government.
It ordered maintaining the current level of CNG rates till the determination of the final pricing formula.
The court asked the Oil and Gas Regulatory Authority (Ogra) to take prompt action in addressing the CNG crisis in the wake of the overdrawn controversy over its pricing.
Meanwhile, the court directed the ministry of petroleum to submit an updated report on the decision of the Economic Coordination Committee (ECC) relating to the guidelines for the CNG prices formula on the next date of hearing, scheduled for December 20. In addition, CNG station owners were also directed to submit their audited accounts to Ogra.
At the outset of the court proceedings, Salman Akram Raja, counsel for Ogra, said that the price determined between the CNG association and station owners would be presented to the federal cabinet on Tuesday (today). However, Secretary for the Ministry of Petroleum and Natural Resources Dr Waqar Masood said he was unaware whether the matter was part of ECC’s agenda.
Ogra had recommended Rs73.96 per kg for Region I and Rs65.50 for Region II, he added.
Raja informed the bench that the fertiliser sector was being subsidised and the burden was passed on to other sectors, with the objective of reducing the cost of fertiliser to benefit farmers.
He contended that cross-subsidies determine the cost factor of CNG. Ogra had also rationalised the excessive margin provided to CNG stations as directed in pursuance of court orders, Raja stated.
Responding to a query from the bench, the counsel said that CNG station owners were not allowed to operate their stations on diesel-powered generators. He also submitted a report regarding the deployment of staff on each station.
He apprised the court that only 400 CNG stations had provided their audit report, whereas representatives of CNG stations disputed the claim by saying that a majority of them had submitted them.
When asked by Justice Jawwad S Khawaja on whether court orders were followed regarding the fixing of CNG prices, Raja said the absence of the Adviser to the prime minister on petroleum and natural resources Dr Asim Hussain at the ECC meeting meant the issue could not be resolved.
Unaccounted gas loss
Meanwhile, Abid Hasan Manto, the counsel for Sui Southern Gas Company Limited and Sui Northern Gas Company Limited, also submitted a report before the apex court bench regarding the unaccounted gas loss of the two companies.
Manto said that the Sindh High Court and Lahore High Court were hearing petitions regarding the issue. The LHC has reserved its judgment on the issue, whereas the matter was still pending before the SHC. Therefore, the apex court decided to postpone the hearing till high courts make their decision.
Published in The Express Tribune, December 18th, 2012.
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prices was not its domain, but it would intervene only if there was a violation of the fundamental rights of citizens.
Fair enough.